Swap of digital assets For its users in New Zealand, Huobi Global has announced that it will be limiting the trading of derivatives. All coin-marginated futures and swaps, Tether (USDT)-marginated contracts, options, and exchange-traded products fall under this category (ETPs).
Huobi provided a timeline for the phase-out of the offerings in a notice, designating August 23 as the date it updates its user policy to add New Zealand as a restricted jurisdiction. New Zealanders won’t be able to open new derivatives positions after that date, and it will stop accepting users with New Zealand KYC and IP addresses.
After the date, closing open trades is the only derivative action permitted. According to the exchange, this will be done in a systematic manner while guaranteeing the security of customer assets. According to Huobi, the action is being taken in accordance with local laws.
“Unfortunately, Huobi Global is no longer able to offer derivatives trading services to users in New Zealand. We truly regret any inconvenience this may have caused and appreciate your help,” the note read.
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The ban was put in place immediately following the Seychelles-based exchange’s June market expansion into New Zealand. Apart from New Zealand, Huobi’s user agreement limits derivatives trading in a total of 13 nations. These include, among others, Israel, China, Hong Kong, Taiwan, Spain, and the United Kingdom.
In a similar vein, users from the United States, Canada, Japan, North Korea, Singapore, and six other nations are not permitted to utilize any of the exchange’s services. The exchange is also in the process of ceasing all of its operations in Thailand after failing to comply with the Thai Securities and Exchange Commission’s new registration criteria (SEC).
Huobi Worldwide is making progress with its goal of global expansion by entering new markets. In July, it received authorization to conduct business in Australia from the Australian Transaction Reports and Analysis Centre (AUSTRAC). Additionally, it acquired licenses from Dubai’s VARA, and Hong Kong’s Securities and Futures Commission accepted one of its few license applications (SFC).
According to a previous Bloomberg article, the exchange’s founder Leon Li intends to sell the majority of his stock in the business for up to $3 billion. Justin Sun, the creator of the Tron blockchain, and Sam Bankman-Fried, the creator of the FTX exchange, are two potential buyers.
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About Houbi Global
Leading cryptocurrency exchange Huobi Global is well-known in Asian markets. Huobi, founded in 2013, offers a digital asset ecosystem that includes spot trading, trading in derivatives, staking, crypto loans, crypto yield products, and more.
Huobi Global offers a comprehensive ecosystem for seasoned cryptocurrency traders and investors by enabling users to buy, sell, stake, and borrow various cryptocurrencies. The exchange hasn’t been able to ensure regulatory compliance in significant areas, and new users might find the platform’s abundance of tools and features confusing.